Gold slips as oil prices stoke inflation fears ahead of Fed meeting

Spot gold fell 0.5% to $4,120.49 per ounce on Tuesday as rising oil prices intensified inflation concerns among investors. US gold futures for December delivery dropped 0.5% to $4,139.10 per ounce during the same period.

Brent crude hovered near a five-month high as traders priced in geopolitical risks from Houthi attacks on Saudi infrastructure and vessel incidents in the Gulf. Ricardo Evangelista, director and CEO of ActivTrades, noted that persistent inflationary pressures from high energy prices support expectations of further monetary tightening by the Federal Reserve.

The Federal Reserve is widely expected to leave interest rates unchanged at its October 27-28 policy meeting, shifting focus to guidance on a possible increase in December. Traders currently assign a 90% probability to a December rate hike, according to CME FedWatch Tool data, while the upcoming US Personal Consumption Expenditures report offers additional clues on the interest-rate outlook.

Read the full story at cnbc.com.